Conversion of Mallow sugar factory into a bio-ethanol plant under threat

ONE of the biggest threats to the Mallow sugar factory being converted into an ethanol production plant is the fact that it is much cheaper to produce ethanol from wheat rather than sugar beet, officials from the Department of the Marine and Natural Resources have indicated.

Minutes from a meeting held between the Department of the Environment, Communications, Marine and Natural Resources and Sustainable Energy Ireland (SEI) earlier this year show that department officials have raised this point with those interested in offering an alternative to North Cork’s sugar beet farmers.

Last month, Cork County Council advertised for a consultant to examine the feasibility of the bio-ethanol production at the former Mallow Sugar Factory.

The report is expected to be completed by mid-August.

The consultant will be charged with finding if there is commercial potential for an alternative bio ethanol plant.

According to Minister for State at the Department of the Environment, Batt O’Keeffe, the conversion of the plant is aimed at “continuing direct employment to the area, the maintenance of beet growers’ livelihoods, the reduction of greenhouse gas emissions and consequent savings from the needs to buy less carbon credits”.

Minister for Agriculture, Mary Coughlan has already offered her support to the idea and it’s understood Teagasc has backed the usage of sugar beet as an alternative energy source.

Discussions have taken place between the Department of the Environment, the Department of Marine and Natural Resources, Cork City Council and Cork County Council on the possible conversion of the factory.

In the last budget, Minister for Finance, Brian Cowen announced a five-year bio-fuels excise relief package costing over €200 million and €65m in funding for renewable energy schemes including the development of an indigenous bio-fuel plant.

It would be impossible to ring fence such funding for the Mallow plant as a number of other alternative energy companies are likely to seek part of this funding.